Union Budget 2023-24 will be presented on 01 February, 2023 by Finance Minister Nirmala  Sitharaman at 11 am. It’s no surprise that this budget is one of the most anticipated in recent times as it will be the Modi-government’s last budget before elections and Ms Sitharaman’s 5th consecutive budget. 

A crucial moment for every Indian taxpayer, the Budget speech lasts between 90 to 120 minutes. In the past, the Union Budget was presented on the last working day of February at 5 pm, but has since been moved to the first of February at 11 am to allow for more time to prepare its implementation before the start of the next financial year on 01 April.

As India’s economy stands at a crucial juncture, ready to join the ranks of the world’s top economies, it is faced with significant challenges such as increasing inflation, higher interest rates and a growing fiscal deficit. With these challenges in mind, the entire nation eagerly awaits the budget announcement with high hopes and expectations.

Budget 2023 expectations – What may change in personal income tax?

Individual taxpayers are hoping for the government to update the current tax slabs and rates, as they have remained unchanged for several years. This could help the middle class cope with rising costs due to inflation. Additionally, the basic income tax exemption limit could be increased to Rs. 5 lakhs for those earning up to Rs. 2.5 lakhs per year. 

The Section 80C limit, which has not been updated since 2014, should also be raised to a higher amount such as Rs. 2-2.5 lakhs to benefit salaried taxpayers. Furthermore, due to the recent increase in repo rates by the RBI, home buyers are facing a higher interest rate burden and it’s time for the government to come up with a plan to lower interest rates on home loans.

Sectors in focus for Budget 2023-24

Taking into consideration the impact of global downturn, rising inflation, dwindling exports, and slowing consumption, this year’s budget focus will likely be on sectors that will help in maintaining economic sustainability. 

Markets and Budget 2023

Despite volatile global market conditions, Indian markets have remained relatively stable. In the past, Indian equity markets have been uneasy leading up to budget announcements. The market’s reaction to Budget 2023 will depend on whether the government presents a budget that appeals to the general public.

FAQs

1.When will the Union Budget 2023 be announced?

The Union Budget 2023 will be announced on Feb 1, 2023.

2.What are the different categories of Union Budget?

The two different categories of Union Budget are revenue budget and capital budget. The revenue budget government’s receipts and expenses. Capital budget covers capital expenditure and receipts.

3.What are some of the key areas covered under the Union budget?

Some of the areas that are covered under the Union budget announcement every year include income tax, defense, GDP, sports, agriculture, education, health, finance, energy, infrastructure, etc.

4. What is the current income tax exemption limit?

The current income tax exemption limit is Rs. 2.5 lakhs for individuals and HUFs below 60 years of age.

5. Who presents and prepares the Union budget?

The budget will be presented by FM Nirmala Sitharaman. It is prepared by the Department of Economic Affairs (DEA), specifically the department’s budget division. 

6. How long is the Union Budget speech?

The Budget presentation can last anywhere from 90 to 120 minutes.